US Fed Chairman Jerome Powell refrained from giving a forward guidance on rates and said the Committee would evaluate the implications of incoming data on a meeting-by-meeting basis
In a widely expected move, the Federal Open Market Committee (FOMC) hiked key rates by 25 basis points to a 22-year high at 5.25 percent to 5.5 percent. Global markets had priced in the rate action, but the lack of forward guidance on the rate trajectory weighed on market sentiments. More specifically, markets were hoping for a clear signal from the US Federal Reserve that rates had peaked. However, the central bank’s chairman Jerome Powell burst the bubble.